In a surprising move, today at 8PM, Prime Minister decided to address the nation, after meeting his cabinet colleagues and Chiefs of all three Military arms.

The biggest announcement is to reduce corruption, Modi government has invalidated all 500 and 1000 Rs notes currently in circulation by the end of the day at 12 midnight today. These note are no longer legal. He also provided some ways to safeguard genuine holders of these large denomination notes but overall it would hit all large, mostly illegal, hoarders of currency.

Modi also announced that RBI will bring new 500 and 2000 Rs notes in circulation but the existing note will be invalid.

PM Modi also spoke about how India became one of the fastest growing nation in BRICs within 2 years. But then he turned to terrorism and rampant corruption in the society and politics.

Then he mentioned that due to his government’s effort, India got back 1.25 (‘sava’) lakh crore rupees, a huge amount by any measure.

This big move to fight cash-based black economy will make a big difference to make economy transparent and efficient.

Summary of the important announcement :

Black money issue, 500 rupees and 1000 rupees banned from Midnight.

ATM’s wouldn’t wouldn’t work on 9th and 10th November. Rather the withdrawal limit is Rs. 2000 only.

All Residents have option till 30th December 2016, to deposit their existing cash balance of 500 and 1000 rupees in their bank accounts.

ATM withdrawal is limited post 11th Nov to 10000 per day, but initial few days it would be 2000 Rs. Only.

Emergency periods like hospitals and chemist, train ticket booking and airline ticket booking, petrol pumps may accept the old notes to 11th November.

No changes in online, card, cheque or any other plastic money transactions.

9th November, banks wouldn’t be available for public banking services.

New notes of 500 rupees and 2000 rupees would bring in circulation, mostly from 31st March 2017.

This one is not clear, but old notes can be exchanged with rbi till 31st March 2017. I guess post 30th December.